Sulphur cap countdown

With 2020 rapidly approaching, much of the shipping industry is trying to ascertain what the International Maritime Organisation's 2020 sulphur cap means for them. As one of the most important regulations to ever hit the maritime world, it will have an impact across the shipping ecosystem, from boardrooms to engine rooms and brokers to seafarers. Given the scale of the impact, many stakeholders are worried about what it means for their business, while some are also anticipating it could deliver them bumper profits. The Fairplay team will be tracking the key developments as we approach 2020, highlighting the risks and opportunities of this momentus change for our industry.  

News & Analysis

ExxonMobile logo
19 Sep 2018
ExxonMobil Marine Fuels' technical liaison manager said that shipowners will be able to successfully switch to using low-sulphur products, but noted that the outcome rests on owners’ preparedness for the switch, as well as the technical abilities of their crews.
19 Sep 2018
A predicted recovery in the next few weeks would mirror the rebound in 2016 when freight rates for VLCCs soared from about USD15,000/day to about USD64,000/day two months later. 
ICS secretary general Guy Platten
17 Sep 2018
For the vast majority of vessels, complying with the 2020 sulphur cap will mean using fuel oils with a sulphur content of 0.5%, the ICS said.
A Maersk container ship
17 Sep 2018
The new BAF, comprising a trade factor and fuel cost, will replace the existing Standard Bunker Factor and enable customers to simulate and calculate the BAF tariff at any fuel price for a given trade route.
An LNG ship at sea
10 Sep 2018
China has seen a surge in the construction of LNG infrastructure as it seeks to combat air pollution and switch from coal to gas consumption.
Ships in dry dock.
07 Sep 2018
While the sulphur cap will apply to all merchant vessels, the poor state of the tanker markets and the large number of tankers that could be affected relative to total fleet size meant the sulphur cap and the fitting of scrubbers could benefit tanker owners the most.